Freyr, Nidec form largest JV for battery energy storage products

Japanese electric motor giant Nidec (OTCPK:NNDNF) has finalised a deal with Norwegian battery start-up Freyr (NYSE:FREY) for a module and pack joint venture; at the same time cementing a previously agreed $3B sales order.
Freyr as part of the deal will supply 38GWh of lithium-ion (Li-ion) battery cells from 2025-2030, with an option to upsize the volume to 50GWh over the period and increase deliveries further beyond 2030.
The binding 38 GWh sales contract has an estimated gross value to FREYR in excess of $3B from 2025 to 2030, representing one of the largest ESS battery cell contracts globally to date.
The Norwegian outfit had previously had announced a 31GWh conditional offtake agreement with Nidec, one of the largest energy storage system (ESS) battery cell contracts globally to date.
The module production is expected to be integrated into FREYR’s Giga Arctic development with volumes of integrated ESS solutions aligning with the targeted ramp up of cell production in 1H 2024.
The agreement between both parties also advances site selection process for US factory replicating 'Giga Arctic' in northern Norway with total firm and optional volume comprising 50% of planned production volumes from Giga Arctic.
Shares of FREY are up 11.1% premarket.
Earlier in Jun.29, FREYR Battery plans to expand planned Giga Arctic project and its construction.